Shilpa Medicare Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 529.12 Cr (+42.96% YoY) and PAT growth of +79.67% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 529.12 Cr (+42.96% YoY) |
| PAT (Q2) | Rs. 79.18 Cr (+79.67% YoY) |
| EBITDA margin | 28.55% (-118 bps YoY) |
| EPS (Q2) | Rs. 4.05 (+80.00% YoY) |
Q2 FY27 delivered a second consecutive record quarter with revenue of Rs.529.12 cr (+42.96% YoY) and PAT of Rs.79.18 cr (+79.67% YoY), with normalized QoQ PAT up 7.39% once Q1's Rs.26.84 cr tax reversal is stripped. However, EBITDA margin of 28.55% slipped below the ~30% band management guided to maintain, driven by a materials-cost surge that cut gross margin to 65.94%, and net debt stayed flat against the stated deleveraging path. The FTF Pharma insolvency is quantified and small (revenue −Rs.2.78 cr, EBITDA −Rs.4.32 cr) but remains a live overhang pending the NCLAT judgment.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "revenue likely ahead YoY on the API/CDMO ramp and a weaker rupee, but the YoY growth rate likely moderates from Q1's +44.9%" | Revenue +42.96% YoY (Rs.529.12 cr), vs Q1's +44.90% — ahead, and moderated as expected | Played out |
| EBITDA margin | "margins likely flat-to-modestly-compressing at the gross level... the EBITDA 'similar range' guide credible but not a given" | 28.55% mgmt-basis margin (29.93% Q1, 29.73% YoY) — modest compression, slipped below the ~30% band | Played out |
| Gross-margin stabilization | "supports margin stabilization rather than a repeat of the 500 bps GP-margin dip" | GP margin 65.94% vs 71.66% in Q1 — a repeat, larger dip (−572 bps QoQ) | Contradicted |
| Deleveraging tailwind | "continued deleveraging is a plausible tailwind to PBT if the trend held" | Finance cost −19.10% YoY but net debt flat (+Rs.1.90 cr vs Mar-26) | Partially |
| Working-capital discipline | "working-capital discipline (DSO, collection) a live margin-of-safety question" | WC build (inventories Rs.442.54 cr) but CFO/PAT 1.62× | Partially |
| FTF CIRP quantification | "FTF Pharma CIRP quantification" as a watch item | Filing quantified: revenue −Rs.2.78 cr / EBITDA −Rs.4.32 cr / PBT −Rs.3.75 cr for the excluded 22 days | Played out |
| API ramp "from Q2 FY27" verifiable | "it is the quarter the claim becomes verifiable" | Single-segment filing — split not disclosed | Not observable |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin to "remain in a similar range" (~30%) | Q1 FY27 earnings call (Aug 5, 2026) | 28.55% (management basis, on revenue from operations) — below the ~30% band | Missed |
| "Debt will keep coming down" | Q3 FY26 earnings call (Feb 6, 2026) | Net debt Rs.614.69 cr vs Rs.612.79 cr at Mar-26 (+Rs.1.90 cr) — flat, not down | Missed |
| ~3 late-stage CDMO NCE commercializations by FY27 | Q1 FY27 earnings call | No update in the filing | Too early |
| OLC partner refile by Q3 FY27; no meaningful OLC FY27 revenue | Q1 FY27 / Q4 FY26 earnings calls | No update in the filing | Too early |
| "Confident in delivering a stronger FY27" (MD commentary, Q1 FY27 presentation) | Q1 FY27 presentation | H1 revenue +43.85% YoY, H1 PAT +98.0% YoY | Confirmed on H1 evidence |
| Operating leverage from asset sweating; ROCE improvement (CFO, Q3 FY26 call) | Q3 FY26 earnings call | Employee and other-expense ratios fell YoY (22.4%→18.3%; 19.7%→19.1%); PAT +79.67% vs revenue +42.96% | Confirmed |
| Raw-material inflation is temporary, pass-through partial and time-varying | Q1 FY27 earnings call | Materials at 36.3% of revenue (31.0% in Q1); GP margin 65.94% — pass-through has NOT yet recovered | Not yet visible |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.